1.

For 2018 taxable year, determine the applicable business tax of the following:
Lease of residential units:

Case Monthly rental Aggregate Annual Answer

Rental
A P 14,000 P 3,200,000 EXEMPT FROM VAT
B P 16,000 P 2,800,000 % VAT
C P 16,000 P 3,000,000 % VAT
D P 18,000 P 3,200,000 VAT

Lease of commercial units:

Case Monthly rental Aggregate Annual Answer

Rental
E P 12,000 P 3,200,000 VAT
F P 16,000 P 2,800,000 OPT
G P 16,000 P 3,000,000 OPT
H P 10,000 P 3,500,000 VAT

2. Assume the following transactions with the corresponding invoice costs/prices:

Apol, Non-VAT registered taxpayer, sells to LJ, VAT taxpayer P 89,600

LJ, VAT taxpayer, sells to Chris, VAT taxpayer 134,400
Chris, VAT taxpayer, sells to Abi 201,600
Abi, Non-VAT taxpayer, exported the goods in Canada 300,000

Required: Determine the following:

a. VAT payable of Apol- EXEMPT
b. VAT payable of LJ- P14,400
c. Vat payable of Chris- P1,500
d. Vat payable of Abi- EXEMPT

3. Conanan is a VAT registered taxpayer. It had the following data for the month of January
(VAT inclusive):
Cash sales, invoice amount P 660,800
Sales on account 246,400
Purchases 291,200
Consignment shipments
Less than 60 days 38,500
More than 60 days 22,400
Goods paid to creditors (dacion en pago) 16,800

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 Goods given as Christmas gift to employees 19,040
Property dividends to stockholders 8,960

Required: Determine the VAT payable for the month.

4. ABC Corporation (vat reg.) has the following data for the month of March:
Gross sales (VAT exclusive) P 8,000,000
Sales returns 400,000

Goods shipped on consignment (net):

Units Unit Price
March 25 40 P 10,000
February 14 30 10,000
January 8 20 10,000

Goods withdrawn for use by the company P 50,000

Goods taken as payment to creditor 30,000
Purchases for the month of (net of VAT):
Goods P 600,000
Supplies 75,000
Capital goods (U.L = 4 years) 1,100,000
Freight and insurance 8,500
Salaries of employees 385,000

Additional information:
 Received cash representing payment for ten (10) units delivered on
February 14. The amount received was net of ten percent (10%)
commission.
 A consignee reported and remitted P200,000 (gross of 10% commission)
representing 20 units sold from goods consigned in March.

Required: Determine the VAT payable for the month of March.

5. Bobs Bookstore, VAT registered, is engaged in business of selling books, school supplies,
and gift items. The following were provided to you during the month of October
(inclusive of VAT, if applicable):
Sale of school supplies P
1,680,000
Sale of books 1,200,000
Sale of gift items 1,008,000
Purchase of school supplies and gift items for sale 1,344,000
Purchase of books 600,000

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 Purchase of computers used in vatable and non-vatable transactions
448,000
Purchased of office supplies used in vatable and non-vatable
transactions from non-VAT registered suppliers
200,000

Required: Determine the vat payable for the month of October.

6. Omega Corporation is engaged in a business subject to value added tax and another
business which is not subject to value added tax. Omega’s business data for the current
year were provided as follows:
Sales, vat business, invoice amount P 896,000
Sales, non-vat business, 200,000
Purchases of goods, vat business, invoice amount 224,000
Purchases of goods for non-vat business, inclusive of input vat 33,600
Purchase of depreciable asset for common use, vat included 112,000
Purchase of supplies for common use, vat included 2,240
Rental of premises for both types of business. The lessor
is non-vat registered person 22,400

Required: Determine the vat payable for the year.

7. The following data for the month relates to William Company, a VAT registered person
(amounts are vat inclusive):
Domestic sales P 330,000
Other domestic sales (sales to export traders) 274,996
Export sales 200,000
Purchases of goods for domestic sales 374,000
Purchases of supplies on domestic sales 69,848
Purchase of service 154,000
Purchase of goods for export 55,000

Required:
a. Determine the total input tax
b. Determine the value added tax payable if excess input taxes on exports are
claimed as tax credit.

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